NI Act_Practicle Problems_28

State, giving reasons, whether the following instruments are valid promissory notes - (i) X promises to pay Y, by a promissory note, a sum of Rs.5,000, fifteen days after the death of B. (ii) X promises to pay Y, by a promissory note, Rs.500 and all other sums, which shall be due.

a. The future event i.e. death of B is certain, though date is uncertain. The instrument is valid.


b. The sum payable is not certain. Hence, it is not a negotiable instrument.